What happens if payments to Dermani Medspa are not received when due?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
We may also refuse to execute any Successor Franchise Agreement with you under other circumstances, including, but not limited to, your failure to substantially comply with the terms of this Agreement, your failure to pay amounts owed to us when due, or your failure to cure of any defaults incurred during the initial term of this Agreement, if applicable.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, failure to pay amounts owed to Dermani Medspa when due is grounds for Dermani Medspa to refuse to execute a Successor Franchise Agreement. This means that if a franchisee does not maintain timely payments, Dermani Medspa has the right to deny the franchisee the opportunity to renew their franchise agreement for a subsequent term.
This policy is significant for prospective franchisees as it underscores the importance of maintaining good financial standing with Dermani Medspa throughout the term of the franchise agreement. Franchisees should ensure they have sufficient capital and a solid business plan to meet their financial obligations to avoid jeopardizing their ability to renew their franchise in the future. The FDD also defines EFT, or electronic funds transfer, as the manner in which franchisees will remit all payments due to Dermani Medspa during the term of the agreement, so franchisees should be prepared to make payments via EFT.
It is important to note that while Dermani Medspa can refuse to grant a successor term, there might be legal requirements that compel them to do so. In such cases, the successor term would be subject to the conditions of the then-current franchise agreement Dermani Medspa is using for new franchisees. If Dermani Medspa is not offering new franchises at that time, the terms of the then-current franchise agreement that Dermani Medspa indicates will apply. If that is not allowed for any reason, the successor term will be governed by the terms of the original agreement.